New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    A man invested a certain amount of sum at 12.5% per

    annum simple interest and earned an interest of Rs.2700 after 4 years. If the same amount is invested at 10% per annum compound interest, compounded annually for two years, then find the interest.
    A Rs.1512 Correct Answer Incorrect Answer
    B Rs.2816 Correct Answer Incorrect Answer
    C Rs.1134 Correct Answer Incorrect Answer
    D Rs.1760 Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Let the certain sum of money be Rs.P. So,  P x 0.125 x 4 = 2700 => P = Rs.5400 Desired interest = [(1.1)2 – 1] x 5400 = Rs.1134

    Practice Next

    Relevant for Exams: